Model Fleet Loss Control Program

INTRODUCTION

Loss control is a management priority whether the fleet is large or small. Management must
rely largely on vehicle operators to supervise their own actions behind the wheel.
Management must communicate a strong fleet safety policy and support it with emphasis on
driver selection, testing, training and the development of defensive driving techniques.

JGS advocates that a fleet loss control program should consist of the following basic
elements:

• Management statement of fleet loss control policy

• Driver selection

• Accident record keeping, reporting and analysis

• Vehicle inspection and maintenance

• Transportation of hazardous materials

• Driver training and motivation

• Loss control program audit

Depending on the type of fleet, whether school bus, salesperson, long haul trucking,
transportation of hazardous materials, etc. and the locations’ operations, one program element
may need more emphasis that another. As with other programs, fleet loss control must be
tailored to fit the specific needs of the applicable location and fleet.

This model program has been developed to address appropriate Department of Transportation
(DOT) Federal Motor Carrier Safety Regulations (FMCSR) for companies involved in
interstate transportation. The guidelines and procedures developed in this model program,
however, can be adapted to all types of fleet operations, including intrastate.

Loss control is a management responsibility, which includes the development and

implementation of an effective program suited to specific operational needs. It is JGS’s hope
that this model program will assist management in meeting this responsibility.

Neither JGS Insurance nor its affiliates assert that compliance with the suggestions contained
in this program will assure the safety of persons and property.

MANAGEMENT STATEMENT OF FLEET LOSS CONTROL POLICY

Motor vehicle accidents can be prevented. Through such prevention, injury can be avoided
and costs can be reduced with a resulting increase in the wellbeing of our company.
It is the policy of this company that every effort be made to prevent motor vehicle accidents.
It is the responsibility of all personnel - managers, supervisors and drivers - to comply with
this policy.

The fleet loss control program, under the direction of the fleet manager or supervisor, facility
manager consists of:

• Driver selection procedures

• Vehicle occupant protection
• Ongoing defensive driving training
• Vehicle selection, inspection and maintenance procedures
• Accident investigation and analysis procedures
• Accident review board (at least three members)
• Evaluation of individual and divisional safety performance
The effective integration of fleet loss control into the daily conduct of business will
contribute significantly to the continued success and prosperity of our company and its
employees.

Officer’s Name: ________________________

Title: ________________________

DRIVER SELECTION

When employees are allowed to drive a company vehicle, or to drive any vehicle for the
company, they are entrusted not only with the operation and care of the vehicle, but also the
company’s reputation.

Employees shall be evaluated and selected as to their driving ability if they are to drive on
company business.

To evaluate employees as drivers, management shall:

• Ascertain that the employee has a valid driver’s license, including a
Commercial Driver License (CDL) where warranted.
• Ensure that the employee is qualified to operate the specific type of vehicle.
• Review the employee’s knowledge of vehicle operation and safe driving techniques by
conducting a written examination and driving test.
• Review the employee’s Motor Vehicle Record (MVR) annually (more frequently if
reasons warrant) to evaluate the individual’s driving experience and observance of
traffic laws.
• Review past driving performance and work experience through previous employers
reference checks.
Driver Qualification:

The establishment of effective driver qualification controls is important to the successful

operation of the fleet. The opportunity to select the right employee for the driving task
depends largely on management’s ability to develop standards which reflect the prerequisites
and skills necessary for satisfactory job performance while taking into consideration
applicable federal and state regulations with which the company must comply.

This company has implemented three levels of driver qualification criteria. Use of any or all
of these criteria is dependent upon the nature and scope of the operation of each
division/location.

1. State-regulated driver qualification parameters must be met. Regulatory information shall

be obtained from applicable state departments of transportation and motor vehicle services.

2. Where applicable, drivers shall comply with D.O.T. Commercial Driver License (CDL)
regulations. JGS’s Loss Control Data Guide F.13550B: “Commercial Driver License Act”, is
listed in Appendix C as an available reference for specific information on driver eligibility,
knowledge and skills testing, and special endorsements.

A driver is unacceptable if the driver’s accident/violation history in the past three years:

1. Includes one or more of the following violation convictions:

• Driving under the influence of alcohol or drugs

• Hit and run
• Failure to report an accident
• Negligent homicide arising out of the use of a motor vehicle
• Operating during a period of suspension or revocation
• Using a motor vehicle for the commission of a felony
• Operating a motor vehicle without the owner’s authority
• Permitting an unlicensed person to drive
• Reckless driving
• Speed contest
2. Consists of any combination of accidents (preventable and non-preventable) and moving
violation convictions which total four.

Drug Testing:
This company’s testing procedures have been developed and implemented in compliance
with Federal Highway Administration (FHWA) regulations promulgated through the
Department of Transportation. It is understood that local facilities will modify the corporate
program based on applicable state/local drug testing regulations developed for interstate
and/or intrastate transportation.
The drug testing program is composed of the following elements:
• Testing
• Pre-employment
• Reasonable cause
• Post-accident
• Random
• Record Retention
• Employee Assistance Program
 • Medical Review Officer
It is important to note that facility-oriented drug testing programs shall be reviewed and
evaluated by appropriate legal counsel prior to implementation.
ACCIDENT RECORDKEEPING, REPORTING AND ANALYSIS
This company considers the elimination of all motor vehicle accidents as a major goal. To
accomplish this task, it is paramount that all accidents be recorded and investigated. The
investigation is used to identify needs for:
• More intensive driver training and/or refresher training
• Improved driver selection procedures
• Improved vehicle inspection and/or maintenance activities
• Changes in traffic routes.
Major vehicle accident recordkeeping procedures consist of the following components:
• Documentation of causes and corrective action
• Management review to expedite corrective action
• Analysis of accidents to determine trends, recurring problems and the need for further
control measures
• Compliance with DOT requirements where necessary
Implementation of these procedures remains the responsibility of both the driver and
manager.
Driver Responsibility:
As the driver is the first person at the accident scene, it is important that he/she initiate the
information-gathering process as quickly and thoroughly as is feasible. JGS Insurance
provides a “Driver’s Emergency Accident Report Kit” (F13305), available through its claims
facilities, for this purpose. The kit is referenced in Appendix C.
Management Responsibility:
Management is reasonable for obtaining the accident data from the driver through the
reporting kit, information form, and/or by verbal communication. It is important for
management to determine the extent of the accident, especially if it involves injury or death
to the driver, passengers or other parties.

Management should proceed with a formal investigation as soon as possible to determine the
underlying causes as well as what can be done to prevent a similar occurrence in the future.
The resulting accident report should be forwarded to the insurance claims office along with
any additional support data (e.g., witness statements, photographs, police reports, etc.) and a
copy sent to the Department of Transportation where warranted.
The determination of preventability of an accident is the function of this company’s accident
review board, which is comprised of (at least three) representatives of management and the
drivers.

The purpose of the accident review board is to:

• Evaluate the circumstances surrounding an accident and the action
to be taken by the driver.
• Determine if the accident was “preventable” or “non-preventable”
in accordance with standard criteria.
 • Provide a means for enforcing management and driver responsibilities.
JGS Loss Prevention’s “Fleet Vehicle Preventable Accident Guide” is available as an
accident review board reference and is included in Appendix B.

VEHICLE SELECTION, INSPECTION AND MAINTENANCE

Proper selection and maintenance of equipment are an important aspect of this fleet loss
control program. Reduced operational costs, reduced accidents from vehicle defects and
improved public opinion are the direct results of a well implemented maintenance policy.
Vehicle Selection:
This company’s fleet maintenance program starts with the selection of vehicles with the
understanding that the wrong equipment can result in excessive breakdowns and weak with
resultant hazards to personnel, costly delays, poor service and customer complaints. It is
essential that this company purchase vehicles which are designed for the specific job for
which they are going to be used.
Fleet management must analyse transportation needs and determine what is expected of the
vehicles in the fleet. An over-designed vehicle will involve too much of an initial cost as well
as anticipated additional maintenance costs. An under-designed vehicle can involve a shorter
life, more breakdowns and a higher overall maintenance cost.
Standardization of the fleet by manufacturer and model type, as well as components within
the vehicle, is advantageous in that standardization will include a reduced parts inventory,
enhanced ability of mechanics to expedite repairs, reduction of inadvertent abuse of vehicles
by drivers, and more efficient appraisal of the suitability of the vehicle for the task involved.
It is understood, however, that standardization does not limit the fleet manager to one
supplier, but, rather a network of several suppliers to maintain necessary selection leverage
and competitive pricing.
Vehicle Inspection:
A documented program of pre-trip and post-trip vehicle inspection is a critical component in
the vehicle maintenance and loss control process. Detection and correction of a vehicle defect
or deficiency reduces the risk of a mechanical condition contributing to an accident or vehicle
breakdown which can result in death, injury and property damage, as well as missing
deliveries, bad publicity, customer dissatisfaction, or on-the-road repair problems.

Documentation of the inspection process is maintained using the JGS’s Loss Control Data
Guide F.13641: “Pre and Post-Trip Vehicle Condition Report”, which is included in
Appendix A. The report is designed for both pre-trip and post-trip inspection purposes and
can also be used for periodic inspections while in transit. By keeping a copy of the vehicle
condition report on the vehicle, the driver, mechanic or other interested parties can ascertain
at a glance the known mechanical condition of the vehicle.
Driver training in proper vehicle inspection techniques is important, since it is the drivers
who spend the most time with the vehicle and are held accountable for its proper inspection.

The Federal Motor Carrier Safety Regulations (FMCSR) require that drivers complete a post-
trip vehicle condition report and have a copy of the report in the power unit. An inspection
criterion is identified in the AISG “Inspection Points” guide in Appendix B. Before driving a
vehicle, the driver must be satisfied that the vehicle is in safe operating condition, review the
last vehicle inspection report in the power unit, and if defects or deficiencies had been
identified on the report, sign the report to acknowledge that it was reviewed and that there is a
certification that the required repairs have been completed.

The FMCSR also requires an annual inspection by a qualified inspector of all vehicles
covered by these regulations, including trucks, buses, tractors, full and semi-trailers,
converter dollies, etc. Each piece of equipment is verified through the vehicle condition
report that the inspection was performed. This company adopts the vehicle inspection
requirements of the FMCSR for its entire fleet.

Vehicle Maintenance:
Vehicle maintenance can take the form of three distinct programs: preventive maintenance,
demand maintenance and crisis maintenance. While all three types have their role in the fleet
loss control program, the most cost effective control is preventive maintenance.

The groundwork for a good preventive maintenance program starts with management. A
review of manufacturer’s specifications and recommendations for periodic preventive
maintenance should be integrated with the actual experience of the fleet. The fleet manager
must be careful not to avoid the manufacturer’s warranty when approving periodic repairs.

Preventive maintenance (PM) is performed on a mileage or time basis. Typical PM jobs

include oil/filter changes, lubrication, tightening of the belts and components, engine tune-
ups, brake work, tire rotation, hose inspection/replacement and radiator maintenance.

Demand maintenance is performed only when the need arises. Some vehicle parts are
replaced only when they actually fail. These include light bulbs, window glass, gauges,
wiring, air lines, etc. Other “demand maintenance” items involve vehicle components that are
worn based on information from the vehicle condition report. These include tires, engines,
transmissions, universal joint, bushing, batteries, etc. Since these situations are identified via
periodic vehicle inspection, they can actually be classified within the PM program.

Crisis maintenance involves a vehicle breakdown while on the road. While situations of this
type may happen regardless of the quality of the PM program, it is an expensive alternative to
not having an effective preventive maintenance program at all. Crisis maintenance situations
should be minimized through proper PM procedures.

Recordkeeping:
This company’s vehicle selection, inspection and maintenance program is only as good as its
recordkeeping procedures. The key document is the “Drivers Vehicle Condition Report”,
which gives a detailed account of vehicle defects and deficiencies for necessary follow-up. A
preventive maintenance log of repairs, parts replacement, fluids inspection/changes, etc.,
provides additional data designed to keep the vehicles on the road and operating safely and
efficiently.

TRANSPORTATION OF HAZARDOUS MATERIALS

Interstate transportation of hazardous materials is governed through the Federal Regulations
promulgated by the Federal Highway Administration of the Department of Transportation
(DOT). Most states and localities have either adopted the federal regulations as local law or
promulgated their own intrastate regulations based on DOT requirements.
Thorough and on-going training of our employees involved (directly or indirectly) with the
transportation and handling of hazardous materials is an important part of this fleet loss
control program.
This company’s hazardous materials transportation program consists of the following:
• Classification of hazardous materials
• Shipping paper and manifest requirements
• Marking, labeling and placarding
• Handling, loading, unloading and dispensing
• Accident reporting and emergency response procedures
The Hazardous Materials Regulations (HMR) designate various hazard classes, including:
• Blasting agent
• Explosive - Class A, B and C
• Combustible liquid
• Corrosive material
• Etiologic agent
• Flammable liquid, gas and solid
• Irritating material
• Organic peroxide
• Other regulated material (ORM) - Class A, B, C, D and E
• Oxidizer
• Poison - Class A and B
• Radioactive material
Definitions of each of these classes, along with guidelines for development of procedures for
shipping, marking, labeling and placarding are provided in section “9” of the American
Insurance Services Group, Inc. (AISG) “Motor Vehicle Report” technical bulletins and are
referenced in Appendix C.

Included in these bulletins are procedures and guidelines for handling, loading, unloading and
dispensing of hazardous materials, as well as references to procedures for reporting of
accidents and incidents requiring DOT notification and communication with local emergency
authorities, Chemtrec, etc.
DRIVER TRAINING AND MOTIVATION
The drivers hired by this company to operate a motor vehicle will have the basic skills and
credentials necessary to perform this function as confirmed through the driver selection
process. The purpose of the driver training and motivation program is to increase these skills
and orient the drivers to this company’s fleet safety policy, equipment and procedures.
Driver training and motivation includes:
• Training and indoctrination into the company safety policy and programs.
• Refresher training on defensive, incident-free driving
• Motivation through company-sponsored incentives
Driver Training:
This company’s driver training program is divided into several levels:
• Initial training
• Refresher training
• Remedial training
Several programs are available through JGS Loss Prevention from associated training
agencies such as the National Safety Council and American Trucking Association to provide
initial training to comply drivers. Specific topics are presented which address specialized
tasks such as load securement, hazardous materials transportation and transportation of
specialized cargo (e.g., bulk liquids, refrigerated freights, hazardous waste, etc.), as well as
specific loss exposures including backing, turning, passing, spills, etc.

Refresher training is useful for regular drivers to update information on operational changes,
new routes, cargo, equipment, government regulations, etc.

Remedial training covers problems of substandard performance which can be alleviated

through corrective training. The need for remedial training is identified through customer
complaints, accident involvement, MVR reviews, and/or evidence of vehicle abuse.

This company uses several approaches to driver training:

• Classroom training
• In-vehicle training
• Driver safety meetings
The JGS Loss Prevention programs referenced above are presented in a classroom
environment and may require the use of a certified instructor. Topic-specific programs,
usually supported by videos, are presented either on a one-to-one self-study basis or in a
driver safety meeting environment.

In-vehicle training is most effective for equipment familiarization, cargo handling, pre-trip
inspection training, etc., and is recommended for conditions and situations that warrant
closely controlled supervision.

This company’s driver training program includes (but is not limited to) the following areas:
• Identification of driver trainers
• Company rules and policies
• Equipment familiarization
• Routes and schedules
• Defensive driving techniques
• Government regulations
• Cargo handling
 • Emergency procedures
• Emergency warning devices
• Specific, trend-identified exposures

Driver Motivation
Several JGS Loss Prevention-sponsored incentive programs have been incorporated into this
company’s fleet loss control program.
The JGS Loss Prevention Safe Driver Award Program provides for formal recognition of
individual drivers who establish and maintain superior driving safety records. The award
includes a gold-tone, silver-tone and/or bronze-tone lapel pin which designates the number of
consecutive years the driver accumulates without encountering a preventable accident. A
walletsized Certificate of Achievement is also presented to the driver in recognition of his/her
superior performance.

The JGS Loss Prevention Motor Fleet Safety Award Program provides recognition to the
corporation and/or company facility/location for the achievement of a successful fleet loss
control program. This award is presented in the form of a plaque-mounted certificate.

Both award programs are designated for presentation at driver safety meetings.
Implementation of additional localized company incentives are encouraged to support the
JGS Loss Prevention award programs.

FLEET LOSS CONTROL PROGRAM

A fleet loss control program audit is necessary to ensure that each element of this company’s
program is functioning properly.
The audit program also provides information on areas where the program needs to be updated
due to changes in operations, regulations and/or exposures. The audit program results are
essential to the accountability system which underlies the management approach to the
overall program.
This company’s Fleet Loss Control Program Audit covers the following general areas:
• Fleet Loss Control Policy
• Driver qualification
• Driver training
• Driver supervision
• Vehicle selection, inspection and maintenance
• Routing and scheduling
• Accident reporting, recording and analysis
The audit form is included in Appendix A.

APPENDIX A
• Drivers Accident Log
• Pre & Post-Trip Vehicle Condition Report Data Guide (F.13641)
• Vehicle Maintenance & Inspection Data Guide (F.13639)
• Vehicle Preventive Maintenance Log
• Fleet Accident Summary Comparison Analysis
• Motor Fleet Evaluation Audit
• AISG Forms
• Driver Qualification
• Application For Employment As Driver
• Inquiry To Past Employers
• Instructions for Performing & Recording
• Physical Examinations
• Examination To Determine Physical Condition Of Drivers
• Record of Road Test
• Written Examination For Drivers
• Scoring Key - Written Examination
• Driver Data Sheet
DRIVER ACCIDENT LOG
Company: ___________________________________________________________
Location: ___________________________________________________________
Driver Name: ________________________________________________________
Date of Birth: ____________________ Date Employed: ___________________

VEHICLE PREVENTIVE MAINTENANCE LOG

Company: ___________________________________________________________
Location: ___________________________________________________________
Vehicle Year/Make/Model: _____________________________________________
Vehicle Identification Number: ________________________________________
APPENDIX B
• AISG Sources of State Motor Vehicle Records
• Fleet Vehicle Preventable Accident Guide
• AISG Vehicle Inspection Points

FLEET VEHICLE PREVENTABLE ACCIDENT GUIDE

Definition of a Preventable Accident
“Any accident involving the vehicle unless properly parked, which results in property
damage or personal injury and in which the driver failed to do everything he reasonably could
have done to prevent or avoid the accident.”
CLASSES OF PREVENTABLE ACCIDENTS
1. BACKING ACCIDENTS
Responsibility for backing safely is entirely the driver’s. Backing is dangerous only if the
driver neglects to make sure the way is clear, during the entire movement. Backing should be
avoided as much as possible.
2. INTERSECTION ACCIDENTS
Stop lights, stop signs or right-of-way is no protection against collision with violators, funeral
processions, fire, police or ambulance vehicles.
3. PEDESTRIAN ACCIDENTS
Whether or not pedestrians have the right-of-way or are jay-walking, pedestrian accidents
should not be decided unavoidable unless searching investigation fails to uncover anything
the driver could have done to prevent the accident.
4. REAR-END COLLISIONS
Such collisions with the rear of the vehicle ahead or when the vehicle to the rear strikes your
vehicle when caused by sudden stops at intersections, grade crossings, passenger stops, when
preparing to turn or park, or when improperly parked or allowed to roll back before starting,
are seldom excusable. Most rear-end collisions can be avoided by foresight in controlling
speed and allowing sufficient following distance. Watch the traffic situation ahead of the
vehicle ahead so you can anticipate the need to stop. Stop gradually - not suddenly.
5. TRAFFIC LANE ENCROACHMENT ACCIDENTS
Such accidents result from passing, weaving, squeeze-plays, shut-outs or entering a line of
moving traffic. Such accidents are
caused by trespassing on the right of others to move in a straight line without interference.
6. ACCIDENTS RESULTING FROM MECHANICAL CONDITION
Any accident blamed on mechanical failure that reasonable and prudent attention could have
foreseen, but was not reported for repair, including any accident blamed on mechanical
failure as the result of a driver operating his vehicle in excess of its mechanical limits, or
from mechanical failure that resulted from a driver’s rough or abusive handling.
7. ACCIDENTS WITH FIXED RAIL VEHICLES
Trains and street cars always have the right-of-way, because they run on fixed tracks, cannot
dodge or maneuver, and need greater braking distance than rubber-tire vehicles.
8. COLLISION WITH STATIONARY OBJECTS, NON-COLLISION ACCIDENTS,
UNATTENDED VEHICLE ACCIDENTS AND MISCELLANEOUS ACCIDENTS
Accidents involving scraping or striking curbs, buildings, signs, trees, posts, bridges, parked
vehicles and overhead obstructions and accidents resulting from overturning, running off the
roadway or colliding with overhead objects sometimes are caused by taking emergency
action to avoid another accident. However, investigation usually reveals that the driver was
not driving defensively prior to that instant. If he had, he would not have placed himself in a
position where emergency action became necessary. Expert drivers don’t depend on their
skill to get them out of tight spots. They depend on their judgment to avoid tight spots.
9. ACCIDENTS BLAMED ON ADVERSE WEATHER CONDITIONS
Rain, fog, snow, sleet or icy pavement do not cause accidents, but add more hazards to
driving, and make the normal hazards worse. Accidents blamed on skidding or bad weather
conditions are classed as preventable, because they can be prevented by reducing speed,
installing skid chains, using sand, or most important, stopping entirely if the going gets too
tough to continue safely.
10. PARKING ACCIDENTS
Unconventional parking locations, including double parking, failure to put out warning
devices, etc., generally constitute evidence for judging an accident preventable. Roll-away
accidents from a parked position normally should be classed preventable. This includes
unauthorized entry into an unlocked and unattended vehicle, failure to properly block wheels
or turn wheels toward the curb to prevent vehicle movement.